US Approves Crypto Perpetual Futures — Following Hyperliquid's Explosive Growth

Historic Regulatory Overhaul in the US

On May 29, 2026, the US Commodity Futures Trading Commission (CFTC) implemented one of the most significant regulatory actions in the crypto market to date: the approval of the first 'perpetual futures' contracts listed on a regulated US exchange. The KalshiEX platform, operating as a CFTC-approved designated contract market, received clearance to list a genuine Bitcoin perpetual contract. According to the Financial Times, the company plans to expand its offering to over a dozen cryptocurrencies, subject to further regulatory reviews.

Concurrently, the CFTC announced a 'no-action' position regarding Coinbase Financial Markets. This means Coinbase can now legally offer US customers access to offshore perpetuals and options markets through a regulated futures commission merchant (FCM) structure.

'US users were previously excluded from about 80 percent of global crypto markets. But not anymore.' — Brian Armstrong, CEO of Coinbase

Hyperliquid and the Offshore Wave

The background for this regulatory shift is not hard to find. The decentralized and unregulated crypto exchange Hyperliquid has experienced explosive growth in perpetual futures trading — including oil-linked contracts that have surged during the ongoing Iran war. According to the Financial Times, war-related oil price volatility has attracted large speculators to platforms operating entirely outside US jurisdiction.

Hyperliquid is among the prime examples of an offshore platform that has emerged in the shadow of US regulation — and is now a direct impetus for the CFTC's policy change.

The majority of this volume has passed through exchanges like Binance, Bybit, and OKX — all beyond the reach of US regulators. CFTC Chairman Mike Selig has been clear that this situation is unsustainable, and that previous administrations' 'enforcement-driven deterrence policy' contributed to pushing liquidity and innovation offshore.

What are Perpetual Futures?

Perpetual futures — or 'perps' in market jargon — are derivative contracts without an expiration date. They allow traders to speculate on the price development of an underlying asset without directly owning it. A 'funding rate' mechanism keeps the contract price in line with the spot price. The product has become the dominant form of crypto derivatives trading globally.

Regulation's Goal: Limit Systemic Risk

CFTC Chairman Selig emphasizes that the regulatory framework is designed to 'limit excessive leverage, volatility, and systemic risk' — not to open the door to uncontrolled speculation. The agency will evaluate future perpetual contracts on a case-by-case basis.

A separate staff advisory from the CFTC's divisions of clearing, market oversight, and market participants also addresses 24/7 trading. It highlights that crypto derivatives, due to their digital infrastructure and global reach, may be particularly well-suited for continuous trading — unlike markets such as agricultural commodities.

Coinbase's Chief Legal Officer Paul Grewal characterized the CFTC's decision as 'a massive achievement for the industry.' Selig himself has linked the measures to President Donald Trump's ambition to make the US 'the world's crypto capital.'

Risks and Future Outlook

The shift is historic, but not without controversy. Critics point out that high leverage in perpetual futures markets can amplify market fluctuations rather than dampen them. The IRS has also not provided clarification on the tax treatment of such contracts, creating legal uncertainty for participants.

For institutional investors and asset managers, however, a regulated US marketplace could provide much-needed predictability. Analysts expect the approval to attract more institutional capital to the crypto market — even during a period marked by risk aversion, with the Bitcoin Fear & Greed Index at 23 out of 100.

Sources: Financial Times, CFTC official statements reproduced via FT-research